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State Bank of Viet Nam mulls local gold purchases

Update: November, 21/2013 - 09:23
People shop for gold jewellery at a store in HCM City. The central bank is considering a plan to buy gold from local sources. — VNA/VNS Photo Hoang Hai

HA NOI  (VNS) — The central bank was considering a plan to buy gold from local sources after selling over 1.7 million taels of gold to the market, said an official.

Head of the State Bank's Forex Management Department Nguyen Quang Huy announced the plan to the participants at a workshop in the capital city, adding that it would increase forex reserves in Viet Nam.

Huy said that global gold prices were unlikely to increase following the positive global recovery. The domestic economic outlook had also recovered well, so investors were looking at other forms of investment.

Huy did not mention when the bank would start to buy back gold, but said they were well prepared for any situation.

SBV said that its intervention in the gold market had helped curb inflation and stabilise the economy.

According to Huy, the central bank's gold auctions had helped reduce speculative activity in the market. The measure had helped minimise gold imports and increase foreign reserves.

Since March 28 this year, the central bank has held 70 auctions and sold 1.7 million taels to local credit institutions.

Under Government Decree No 24/2012/ND-CP dated April, 2012 on gold business activities, SBV is responsible for purchasing and selling gold in the domestic market, and mobilising gold as regulated by the Prime Minister. — VNS

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